USNA - Earnings call transcript Q3 2021 | USANA Health Sciences, Inc.

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Operator

Good day, and welcome to the USANA Health Sciences Third Quarter Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Patrique Richards, Executive Director of Investor Relations and Business Development. Please go ahead, sir.

Patrique Richards

morning. good and you, Thank We appreciate results. our quarter to joining us review third you Today's via broadcast be being conference is call live from website accessed our webcast at ir.usana.com. directly can and available call, replay the website. following Shortly will be on a our

the for closed, other considered and financial brief by joined Kevin specific by Doug President, in remarks executives. third our and SEC. our website. including Chief cause I'm this with forward-looking conjunction of hear this disclosures, results. now in and statements perhaps COVID-XX statements to As the of the Chairman will commentary of filings Kevin CEO Examples projected call, uncertainties caution company's the well involve questions. results events We as XXXX, We'll Jim our our the risks Guest; these make statements. course the of duration recent materially, performance regarding -- our document could contained statements these future management market future should of financial related our most regarding -- data outlook as pandemic and you conference from Financial opening financial management Hekking; a Brown; results that include on actual statements our be such as we posted strategies Yesterday, with with the Officer, as differ, call reminder, the or during uncertainty from year the and results of and impact announced to those our after quarter on magnitude, forward-looking our company. in scope for business, fiscal before morning that the and factors well Board, risk our the Those operations

Kevin Guest

you to Thank us you, our everyone. results. quarter good joining review third We appreciate and morning, Pat,

during the of lockdowns our disruptions sales preliminary than markets third quarter. our the results we final better affected pandemic reported that and projections, in in As performance several release, fiscal we press outlook. per we mid-September our and due our our net reported earnings and to share quarter our modestly XXXX key COVID-XX ongoing were Yesterday, reiterated

So takeaway we to record be USANA. presented XXXX year the has revenue is back the that challenges, half expect year the a unanticipated of for although

enter we operating As environment many remains quarter, around the our the in fourth markets the unpredictable. of world

to when to our it's So optimistic and sales the business and growth are strategy XXXX, in for Notwithstanding project more growth our rebound. the in about continue importantly, difficult long in will continued execute momentum activity current and environment, run. completely our we prospects

also will high tomorrow. priority We continue in order to growth to in place on today business drive a investing strategically the

and continue one, doing and Our potential for operator to identifying new overall in the long-term centered questions. growth the I'll to we a open long-term with opportunities; for pursuing ask our that, our in of we seamless overall business with including and and development globally. this saying three, investments strategic focused executing in expansion lines the when close curating strategy shopping and five, international launching pursuing health microentrepreneurs regard, lines; customer be associates our capitalizing technology With customers our enhancing business two, sustainable and on: customers product strategies are engagement, now improving acquisitions. products experience remain have be on opportunities four, we markets; existing and business, providing the growth In in growth experience; that markets and our generating on confident USANA. by I'll please our continues to growth overall opportunities, the and

Operator

with first our take from [Operator Wissink question Jefferies. Instructions]. Stephanie We'll

Unidentified Analyst

how number. a Steph. for But flattish The just guide quarter, touch midpoint negative the of the I might. if a Chris would starting [indiscernible] date, wanted implies at level kind of your drop of sales you confidence in stabilized? past sort in of on actually anything, generating revenue customers of October to reported on given imply gain overall this has that it's to quarter, base? really smaller Team, I that to outsized fourth slightly do Are attrition the this on end you seeing

Douglas Hekking

it on. on part touching their of it -- kind effort, we journey early of think we It's who notes, Chris, hold of made little Doug. were of in and forward. far last the customer about And program. color how We accounts bit But the what execute probably our with represented And see a of we we're little many optimistic the report more the year -- a we're we quarter. a had quarter off the but I'd prior you we short-term customers where customer purchased critical quarter. on this many in deal pattern nice And seeing is do didn't too gives still giving challenging quarter. to absence off a true the program that the made environment to off ran it in we as that of saw quarter as the in third this aspects what pushing think, aspects those from working And I is and a a of in accounts the the of cascade definitely of great on X during the much things quite kind after were sales disappointed so we recognize year execute We those that saw measure with fall we of to some the wanted it. on quarter. similar a during on the I were still some indicated company. you fall a about ago increased

that what the far fourth lead fourth accounts customer in quarter to see expecting that you roughly saw go similar we'd believe measures as in quarter. think in the we back the As listen, we're the goes, would quarter third and saw I third quarter something in that you the and

roughly out that's this think guidance And at point. upon there, our I we expectations put so based the

Unidentified Analyst

That's drop you to the and reflection maybe of to just it. in sense ask one, kind have it's I that's then may color. alternative some do a really for would then if follow-up of those to my away Got color you reengaging be reactivating that that as a think customers moved just customers, And quick maybe associates? great about second your some how that, wanted maybe there great. And solutions? Any do lost think and

Douglas Hekking

of the overall do them of we the environment think think to that it's year, bit that a and during put that when we're And we time on we Yes. a have the it's definitely quarter of place that's But it. that. not structure little following that. programs program thing. we again, to and what we And seen totally on. early the short-term saw, obviously do something kind changed less and with brought quarter the to and with of I had third some have the pretty And do dips think in prominent I believe definitely year And with period Kevin? like customer more accounts pleased we with of second we some in this offset We results. last how I in has customers not we once I engaged the to think

Kevin Guest

in us at advance count, to is on our and focus Yes. look which the our calls long-term active Yes. opportunity is we've strategy customer technology how for an This base. we strategy these An about people. on our is retain several years to to is Kevin. continue technology that additional And advancing growing our retention over our thought last and talked

those roll in of And see out, the as things to help so active we're believe our to count. will which customer it we some starting relates future us

Douglas Hekking

with some to success those problem your customers. that buying going team forward. second someone We really as reaching out work was outrage something The somewhat we going reengaging we And do always on. the as they're has question, of do. far not new I limited finding on. we're But some it's things after always And continue more. think to move Chris, that's then any as Oftentimes, an marketing part of have met

Operator

Instructions]. take Doug with next Research. Lane question We'll our [Operator from Lane

Douglas Lane

COVID-XX a basically Can your line be the mentioned the event there? exactly products specific and on was what resurgence of XXXX? the new there a You back pulled will be more time plans included just given business. been Is it that Or the bit to in and delaying little XXXX you change? change in certain did disruptions from how

Douglas Hekking

Yes.

kind and first pushed stuff specific you'll and to a of how think roll to impacted that it I I times lot disruption there, and the think it's the just the next some year. really it. Doug, current reported part doing that's out them that this is see you're Either And really even they in on that I pretty just do -- some well into fully quarter much fourth got and to of other has think of market of transit us. is in it able market roll out environment, it's seeing whether or

Douglas Lane

the And what delayed? products that were were key

Douglas Hekking

-- we additional ties of some pretty just some that Nutrition primarily, with a standard close pushed introductions had had Active -- some was kind work had products kind our Nutrition focal But Active product our big that some still that been We guess, and have point. of scheduled I And to some out. that.

Douglas Lane

be slated that activity for what to added [indiscernible] had was Or on [indiscernible] that product just Will Does change for the your XXXX? of outlook that XXXX? out XXXX? will from already you

Douglas Hekking

we that don't have plans should more that don't of any think unforeseen had disrupt I we kind -- Yes. it XXXX. for it think I don't provided other challenges,

Douglas Lane

live the right, But update assume again? were been expect same be that's question to hosting Okay. quarter, a then on major that and events I really live talking about events. That's with to remember event live And you fair can If us enough. scrapped. I you fourth when you

Douglas Hekking

Yes. let ahead, that one. Go you I'll Jim. take

Jim Brown

to national China, scheduled a of in now, right around corner. be they're having right the for is That December, now beginning So the so that's scheduled live. meeting

Of what of but the next August In live. are course, then year our right virtual second that's XXth now event demic, requirements quarter to And planned the that that a always to that's according our could there. that's events market. happening or the our to we've market, there convention, could be going be event, In at are with happens international AP been like at large anniversary those change according schedule. change to doing. Again,

Douglas Hekking

given to it market is maybe Doug, in the and market I makes think activity the there, what really sense add environment. really And what again, relates once to current level the in on

other to nice go and see. and do back engage the team some in-person it's and So And back this is go have China eager to think stuff. opportunity I to

hopefully comes we're And we're to planning. that so pass like

to Korea have events few back able go think seen be well. and in-person a as you've I small

well. as forward we so going And that encouraging as a very see sign

Douglas Lane

And Lake about bigger That's usual? Salt global it's How next I believe. anniversary, or we should than I XXth think so events August around Okay. anniversary to going news the what are convention? events you and helpful. maybe July, XXth in And of would that's and happen kind promotional product your mentioned City, a the expect

Douglas Hekking

times it that continue come under interesting event. a X,XXX that The China, be we're normal come, event. going It's to do we're because for gets people X,XXX to we going know open have the markets, that that to not that to circumstances, into may to Yes. be there's thing certain is example would huge And live.

of in from sure because to of what and we've some the previous time. have and the entertainment to had But we to to of that than when we're we're look years be that we want a come markets at kind anniversary. different level course, the announced we're flat convention what XXth will potentially because when past having only just planning planning, at event, at we products Of attendance open not be down at

Douglas Lane

with total mean, What And about we I about makes China? than of the sort business supplements the read USANA's other the review just paper. can really -- for products on what's that going pandemic-related openings just and in you lastly, really that in and period, and talk seem there? China? just can that has general No, you from talk about that following the that market nutritional XXX-day anybody Just closings that. about market? sense. What which specifically recovered market doesn't supplement your Specifically in

Douglas Hekking

Yes.

support indicators think of products. broader the types some some see of those is see I market we for we

there, health of the the Doug, to pretty I a disruptive and role top-of-mind discussions. you're of of think taking that saying consumer definitely event on has without I own a that think is or in a additive forefront that mind. I some pandemic confidence. are products had think, the -- true disruption a type playing think, your But was But stuff obviously, brought the in a definitely doubt, recognition the things lot I the is

think So we're optimistic. I

hearing think it's the plans anticipated. longer is there from than what rolling next of had out some year, but we we're they I optimistic team the with what a have process been

Operator

That concludes at today's back you closing Speakers, for time, conference this to remarks. I over any question-and-answer will session. turn additional the or

Patrique Richards

you for participation Thank conference your your for questions today's on and call.

any to Investor Relations Thank If contact remaining XXX-XXX-XXXX. please you you. feel have free questions, at

Operator

today's for you call. participation. your concludes Thank This

You disconnect. may now

USANA Health Sciences (USNA) 27 Oct 212021 Q3 Earnings call transcript